A Company May Not Accept a New Project with a Positive

question 31

Multiple Choice

A company may not accept a new project with a positive net present value because of difficulties with hiring new staff and training them.Such limitation to investments is referred to as:

• A)internal capital rationing.
• B)capital rationing.
• C)external capital rationing.
• D)duration of resource constraints.

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Definitions:

Market Fluctuation

Variations in the market prices of goods, services, or securities due to changes in supply and demand, investor sentiment, or other factors.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices.

Incentive to Change

A factor or set of factors that motivates individuals or entities to alter their behavior or decision-making.

Equitable

Fair or impartial in treatment or judgment without bias or favoritism.